Israel lost a case to Iran in Switzerland's highest court, which ruled over a decades-old dispute in favour of Teheran, Reuters reports on Friday.
In accordance with the court ruling, Israel will pay to Iran approximately $1.1 billion plus interest.
The matter concerns a secretive oil pipeline company set up in 1968, before the 1979 Islamic revolution, which made the Israel and Iran adversaries. The company transported oil from Iran to the Mediterranean.
Following the Islamic revolution, Iran has been claiming that it should get share of revenues and assets that remained in Israel.
Since 1994, Iran has been filing lawsuits against Israel in France and in Switzerland.